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Bad Credit Mortgage Shopping
By Karen LawsonMortgage Credit Problems Columnist
Bad credit doesn't
mean you can't get a mortgage loan at reasonable rates, but it's important to
do some homework before you start looking for a new home loan. Here are some
tips for avoiding problems with a bad credit mortgage.
Do You Know Your Credit
Score?
Although free credit reports are commonly offered, credit
bureaus will likely charge a small fee for obtaining your credit score. The
alternative is to get a free credit score in exchange for membership in a credit
monitoring service. Be sure to read the small print on these offers as their
terms and costs can vary. It may be best to pay a one-time fee to the three
major credit bureaus for copies of your credit report that include your credit
score.
Have You Reviewed Your
Credit Report?
Credit reports can contain errors that can lower your credit
score. Make sure the information shown for all accounts is accurate. Contact
the credit bureaus to correct errors. This can take additional time, but it's
better to shop for a mortgage with a clean credit report. Avoid scams that
claim to instantly eliminate all negative information from your credit report.
What is Your
Relationship with Money?
Knowing what caused your financial problems is important for
improving bad credit and promoting financial stability. Non-profit credit
counseling agencies can help you work with creditors to pay off bills and
establish a workable household budget.
These steps can help you get better rates and mortgage
terms. Be sure to ask plenty of questions and be satisfied with the answers
before signing any mortgage documents.
About the Author
Karen Lawson is a
freelance writer with extensive experience in mortgage banking. She holds BA
and MA degrees in English from the
About the Author
Karen Lawson is a freelance writer with more than fifteen years of experience in mortgage banking. She holds an MA degree in English from the University of Nevada, Reno.
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